Intel posted a strong quarter boosted by an uptick in cloud demand - Business Insider

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Intel's CEO says that cloud providers like Amazon are back to buying lots of chips, leading to a strong quarter — but that 'we're letting our customers down' in the PC chip business

Intel CEO Bob Swan rings the Nasdaq opening bell to celebrate the company's 50th anniversary in 2018.simply click here to claim your deal and get access to all exclusive Business Insider PRIME content.

But Intel continued to struggle to resolve production issues that led the company to underestimate demand in the PC market: 'Click here for more BI Prime stories. "We feel great about the quarter," Intel CEO Bob Swan told analysts on an earnings call. "The market we see, the trends we see are as big as we've ever seen."

"We're letting our customers down and they're expecting more from us," he said. "Our intention next year is not be a constraint on our customer's growth."The trends are particularly upbeat in the data center market. Revenue for Intel's data center business rose 4% year-over-year to $6.4 billion. But the data center and cloud buildout recently stalled, leading to a sudden slowdown in chip demand.

"I believe the biggest breakthrough was the data center group for growth in the second half of the year, which had been promised and many dismissed," he told Business Insider, citing some skepticism about Intel's projections. Enterprise growth, he added, is "a very good sign."

 

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